Wynn Resorts’ shares rises on Monday after Deutsche Bank market analyst Carlo Santarelli and Danny Valoy strengthen their price mark for the Wynn Palace Cotai Resort nearby Macau.

Since its opening in August 2016, the Cotai Resurt has been able to generate strong profits and thus making Deustche Bank consider that "better than expected performance could drive modest out period upward revisions and better sentiment around the ramp at the asset."

"We are raising our price target and modestly raising our 3Q17 estimates for WYNN given our belief of better than expected results at Wynn Palace, despite the impact of Typhoon Hato, for which we have modestly lowered our Wynn Peninsula 3Q17 forecast. Overall, our 3Q17 estimates are up and we believe near term Palace performance and upward Consensus revisions for 2018 at the Peninsula will both serve as catalysts for shares. Our price target goes to $161 on our revisions and our shift to 2019 as our base year for valuation. We reaffirm our Buy rating.” The Analysts stated.


The Wynn Palace Cotai Resort Near Macau.

However, the recent devastation of Typhoon Hato affected the tourism traffic in Macau Peninsula. This could make Wynn suffer since it was built in the said area. As for its Las Vegas branch, the resort may also incur a lost in tourism traffic due to the catastrophic shooting that occurred this month. Considering the following matters, analysts downgraded the estimated earnings to $9 million and $1 million for Macau Peninsula and Las Vegas respectively.

More so, the Cotai Palace in Macau is expected to counterbalance any losses. For the third quarter, Deustche Bank revised its estimated earnings from $12 million to $130 million.

Trading Performance


In further details, Wynn Resorts added 3.15% from its pre-market increase of 0.03% in its recent trades which ended at 146.81. The recent bullish candle did not have any low tails indicating that the domination of bulls found success on Monday’s trades.

As for its Relative Strength Index, the company surged dramatically from the 40’s region to the 50’s region. Specifically, it’s at 57.68. It can reach the 70’s region if it could maintain its apparent bulls.

For its Coppock curve performance, the indicator still traded below the negative region despite having a slight uptrend. At -1.03, a sell would advised but with the factors above -  a preferred hold on buy would be recommended.

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